OYO to cut employees' fixed pay by 25 percent
Oyo has asked some of its staff in India to go on leave with limited benefits from May 4 for four months, and also asked all employees in the country to accept a cut in their fixed salaries by 25 percent due to the impact of the COVID-19 on the hospitality industry.
The company currently has around 10,000 employees in the country. "We had to take the hard decision of placing some OYOpreneurs on a Leave With Limited Benefits from May 4, 2020, for four months until August 2020," OYO India and South Asia CEO Rohit Kapoor said in an email send to the employees, which was accessed by PTI.
Those going on this leave will avail benefits such as the continuation of medical insurance and parental insurance, school fee reimbursement, and ex-gratia support, he added. "In addition, to our colleagues on LwLB, in case there is an unforeseen medical emergency, we will support beyond the insured amounts, if the need so arises," Kapoor also said.
Furthermore, the company has confirmed that the employees would receive an ex-gratia amount equal to a total of 60 percent of the monthly fixed salary, paid in two equal installments across May and June.
Earlier this month, Oyo had started placing some of its employees on furloughs or temporary leaves in the U.S. and other select markets on account of the slump in the hospitality industry due to COVID-19 pandemic.
Referring to the 25-50 percent voluntary salary cuts taken by the executive team around the world and other measures, Kapoor said in his email that while Oyo is taking all the necessary actions to mitigate COVID-19's impact and ensure long term success and sustenance of the business the efforts undertaken so far may not be enough as the extent and projected length of the crisis is highly unpredictable.